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5.
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| Finance Committee |
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| Subject: |
| Professional Services Agreement with HF&H for As-Needed Support Services for Refuse Contract Modernization in the Amount Not-to-Exceed $50,000 |
| RECOMMENDATION |
| Approve Professional Services Agreement (PSA) with HF&H Consultants, LLC to provide as-needed support services for refuse contract modernization in the amount not-to-exceed $50,000. |
| BACKGROUND/DISCUSSION |
The City of Brea has an exclusive franchise agreement with Republic Services to provide solid waste and recycling services in the City. The contract is valued at over $9 million annually and was last updated in September 2002.
In May 2017, City Council set a goal to modernize the City’s refuse contract as part of their citywide goals. In October 2017, City Council reviewed Republic Services' contract history and scope of services, and directed staff to open contract negotiations with Republic Services to update/modernize their contract. Further, City Council directed that negotiations shall include concessions where necessary to bring the contract on par with other cities and should include provisions necessary to be in compliance with current state regulations such as AB 341 (Mandatory Commercial Recycling) and AB 1826 (Mandatory Organic Commercial Recycling).
In an effort to reduce the amount of City funds expended on contract services, City staff will be lead and perform the vast majority of the work involved with the contract modernization. However, it is strongly recommended that the City utilize the services of a contractor, acting in an advisory role, to help guide staff’s efforts on critical areas that are beyond staff’s expertise in the waste management industry.
Staff anticipates performing the following major tasks: research refuse contracts from other cities that utilize the Olinda Landfill; conduct outreach and gather data to prepare comparative analysis of other refuse contracts; coordinate meetings with Republic Services to discuss proposed terms of contract amendment and negotiate any potential changes; coordinate review of proposed contract amendments with the City Attorney; provide ongoing project status updates to City Manager; provide updates to City Council; and prepare City Council staff reports, exhibits, and presentations as needed.
On an as-needed basis, the contractor’s scope of work will involve the following areas: review of the existing refuse contract; compare key terms to other modern, state-of-the-art agreements; advise staff on review of operational and financial records of trash hauler's operations; review a comparative matrix prepared by staff based on comprehensive franchise agreements database and industry experience; prepare recommendations and advise City staff in negotiations to obtain favorable terms for the City; and review the final contract/contract amendment language.
The contractor's scope of work is attached in Exhibit A. The final cost of this effort will be dependent on the hauler's willingness to negotiate in good faith and on City Council's desire to be more or less aggressive in the negotiations.
CONTRACTOR SELECTION PROCESS
In 2017, proposals were solicited from three firms all known to have experience in the waste management industry. The firms included: HF&H Consultants, LLC (HF&H), Sloan Vasquez McAfee, and Willdan Financial Services. After evaluating the proposals, staff selected HF&H for this work based on their extensive experience in refuse management and since HF&H has been performed similar work for many other California cities including recent work in organics with the cities of Anaheim, Fullerton, Garden Grove, Placentia, and Yorba Linda.
HF&H Project Manager, Laith Ezzet, has over 30 years of experience in the waste management industry. He has assisted over 100 public agencies in solid waste matters, and negotiated agreements with total values in excess of $2 billion. Mr. Ezzet is considered one of the top industry experts in his field within Southern California, and was highly praised for his work by other north Orange County cities currently contracting with HF&H. Mr. Ezzet also assisted the City of Anaheim in implementing mandatory commercial organics recycling (MORe), one of the first cities in the north Orange County area to do so, and served as a guest speaker at a roundtable on organics recycling last fall. For all these reasons, it is recommended that City Council approve a PSA with HF&H Consultants, LLC to provide as-needed support services for refuse contract modernization in the amount not-to-exceed $50,000. |
| SUMMARY/FISCAL IMPACT |
There is no impact to the General Fund. Funding in the amount of $50,000 will come from the enterprise fund for refuse-related expenditures, Fund 440 (Sanitation & Street Sweeping). This amount was not included in the FY 2017-18 Adopted Budget. However, FY 2017/18, revenue projections are sufficient to cover this cost. Finance will include this item in the next round of quarterly budget adjustments.
SUMMARY
In 2017, City Council expressed that one of their goals was to modernize the City’s refuse contract which was last amended in 2002. In Fall 2017, City Council subsequently provided staff with direction to open negotiations with the City’s exclusive refuse contractor, Republic Services, and begin the process of contract update/modernization. In order to amend the City’s refuse contract with terms favorable to the City, it is strongly recommended that the City utilize the services of a consultant. It is recommended that staff serve as the lead in this process and work with proposed consultant HF&H Consultants, LLC, who would act in an advisory role, guiding staff’s efforts on critical areas that are beyond staff’s expertise in the industry of waste management. City Council is requested to consider approval of a Professional Services Agreement with said firm to provide as-needed support services for refuse contract modernization in the amount not-to-exceed $50,000. |
| RESPECTFULLY SUBMITTED |
William Gallardo, City Manager
Prepared by: Gillian Lobo, Senior Management Analyst
Concurrence: Tony Olmos, P.E., Public Works Director |
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